Correlation Between Bolt Biotherapeutics and ONTX Old

Can any of the company-specific risk be diversified away by investing in both Bolt Biotherapeutics and ONTX Old at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Bolt Biotherapeutics and ONTX Old into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Bolt Biotherapeutics and ONTX Old, you can compare the effects of market volatilities on Bolt Biotherapeutics and ONTX Old and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Bolt Biotherapeutics with a short position of ONTX Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bolt Biotherapeutics and ONTX Old.

Diversification Opportunities for Bolt Biotherapeutics and ONTX Old

0.0

Correlation Coefficient

Bolt Biotherapeutics  ONTX Old

Pay attention - limited upside

The 3 months correlation between Bolt and ONTX is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bolt Biotherapeutics and ONTX Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ONTX Old and Bolt Biotherapeutics is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Bolt Biotherapeutics are associated (or correlated) with ONTX Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ONTX Old has no effect on the direction of Bolt Biotherapeutics i.e., Bolt Biotherapeutics and ONTX Old go up and down completely randomly.

Pair Corralation between Bolt Biotherapeutics and ONTX Old

If you would invest (100.00) in ONTX Old on December 28, 2024 and sell it today you would earn a total of  100.00  from holding ONTX Old or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Bolt Biotherapeutics  vs.  ONTX Old

Bolt Biotherapeutics

Risk-Adjusted Performance

Very Weak

Over the last 90 days Bolt Biotherapeutics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's essential indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

ONTX Old

Risk-Adjusted Performance

Very Weak

Over the last 90 days ONTX Old has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, ONTX Old is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Bolt Biotherapeutics and ONTX Old

The main advantage of trading using opposite Bolt Biotherapeutics and ONTX Old positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bolt Biotherapeutics position performs unexpectedly, ONTX Old can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in ONTX Old will offset losses from the drop in ONTX Old's long position.

The idea behind Bolt Biotherapeutics and ONTX Old pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

Check out your portfolio center.

Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.